In response to media queries and news articles (The Straits Times 25 Sep 99, "PacNet may go to foreign buyer"; The Business Times, 27 Sep 99, "Focus: Philip Yeo") on Mr Philip Yeo's comments that Singapore Telecom's (SingTel) cross-subsidises ...
Singapore, 30 September 1999 | For Immediate Release
In response to media queries and news articles (The Straits Times 25 Sep 99, "PacNet may go to foreign buyer"; The Business Times, 27 Sep 99, "Focus: Philip Yeo") on Mr Philip Yeo's comments that Singapore Telecom's (SingTel) cross-subsidises SingNet's toll-free Internet access scheme, this statement seeks to provide TAS' clarification on the issue.
On 16 Dec 98, SingNet launched its "Tide the Tough Waves" promotion in which all time-based telephone charges of its subscribers would be absorbed by the Internet access service provider (IASP). Pacific Internet and CyberWay subsequently submitted complaints to TAS that SingTel had unfairly cross subsidised SingNet in this promotion. To investigate the claim by the two IASPs, TAS examined SingNet's business case and financial information. After an extensive five-month investigation, TAS ascertained that SingNet was not engaging in any unfair practices. TAS had responded to Pacific Internet and Cyberway on 16 Aug 99, that SingNet's "Tide the Tough Waves" promotion was not anti-competitive in nature and there was no instance of any cross-subsidisation by SingTel of the time-based charges.
We therefore wish to clarify that as far as TAS is concerned, there was no violation of TAS' regulations on predatory pricing and cross-subsidisation by SingTel and SingNet.
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